Suppose you want to estimate the price elasticity of demand for pizza at the restaurant you manage. In August, you charged on average $9.99 per pizza and sold 812 pizzas, In September, you charged $10.99 per pizza and sold 712 pizzas. You believe that no other factors influenced the demand for your pizza between August and September. What is your elasticity estimate?
Suppose you want to estimate the price elasticity of demand for pizza at the restaurant you manage. In August, you charged on average $9.99 per pizza and sold 812 pizzas, In September, you charged $10.99 per pizza and sold 712 pizzas. You believe that no other factors influenced the demand for your pizza between August and September. What is your elasticity estimate?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 2E: The price elasticity of demand for personal computers is estimated to be 2.2. If the price of...
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